Calix Ltd (ASX:CXL) has executed its first bioactive magnesium hydroxide distribution agreement with Afepasa, a European leader in sulphur-based fertiliser and crop protection products.
The distribution licence agreement for the magnesium hydroxide, known internally as BOOSTER-Mag, covers Europe, the Middle East and Africa for a period of 10 years as well as the marketing of Calix bioactive materials under Afepasa branding.
Developing agricultural products takes significant investment
Calix managing director Phil Hodgson said development of new agricultural products takes time and significant investment.
Hodgson said: “As a result it is very pleasing to have reached this significant milestone through partnering with a company of the reach and experience of Afepasa.
“We look forward to working with them to deliver the full potential of this application.”
Current and future IP 100%-owned by Calix
Key terms of the distribution agreement include: an exclusive licence for Afepasa to sell bioactive magnesium hydroxide in Europe, Africa and the Middle East; performance hurdles of minimum sales volumes going up to 400,000 litres by year five; and for any new or developed intellectual property to be 100%-owned by Calix.
Calix’s bioactive materials have been under development for agricultural application for more than four years, with testing over consecutive year on a variety of crops in Australia, Asia and Europe.
This development has demonstrated that grower productivity, safety and sustainability can be substantially enhanced when using BOOSTER-Mag, which targets a total addressable chemical crop protection market of more than US$10 billion.
Afepasa managing director Manuel Montana said: “For over 125 years, Afepasa have supplied sulphur fertilisers and products for the sustainable control of crop pests and diseases.
“Calix’s bioactive magnesium hydroxide has the potential to be a powerful and highly complementary addition to our mineral fertiliser and crop protection portfolio.”
Calix’s commercialisation strategy for its bioactive materials has comprised a sales and marketing licencing model with crop protection companies and distributors while also manufacturing the active materials in-house.
This process began in 2017 and the execution of the agreement marks a significant milestone for Calix.